Money Funds Brace for Flood

BlackRock Inc. and Federated Investors Inc. might bolt the door to shield their funds from a torrent of money that is expected to flood out of U.S. banks when a federal guarantee lapses on roughly $1.7 trillion in bank deposits.

The big money managers worry that cash pouring into the $2.65 trillion money-fund industry will further depress record low yields, hurting investors and making it costlier for managers to operate.

If...

RELATED VIDEO

Money Funds Brace for a Flood

The expiration of an FDIC guarantee on Dec. 31 might cause too much of influx of cash into money-funds and some funds are warning that they could close up shop. Kirsten Grind reports on Markets Hub. Photo: Bloomberg.